New York-based Danco Laboratories, LLC, which was accused of breaking the False Claims Act by failing to pay certain customs duties on imported pharmaceutical products that failed to identify their country of origin, has agreed to pay $765,000 to the U.S. Justice Department.

According to an April 12 release by the Department of Justice (DOJ), Companies that import into the U.S. are required under the Tariff Act of 1930 to label the nation of origin on those goods, and violators are charged a 10% ad valorem levy if their goods are not marked.

“The False Claims Act protects the public fisc by imposing liability, not only on those who knowingly submit false claims to the United States, but also on those who knowingly avoid obligations owed to the United States,” Deputy Assistant Attorney General Brian Boynton, head of the Justice Department’s Civil Division, said in the DOJ release. “This settlement demonstrates the department’s commitment to ensure that importers properly pay all amounts due under our customs laws.”

The settlement addresses claims that from 2011 to 2019, Danco failed to identify the nation of origin on imported items and that it then broke the False Claims Act by purposefully evading paying the marking duties owed to the U.S. over those imports.

Frank Russo, director of U.S. Customs and Border Protection's New York Field Office, said the violations had more than a monetary impact.

“The United States has required imported goods to be marked with their country of origin for generations, so American consumers can use that information in their purchasing decisions," Russo said, according to the DOJ release. "CBP takes the marking laws very seriously and is pleased to work with our partners to ensure importers adhere to all customs laws.”

Danco Laboratories is a pharmaceutical distributor in New York City, which distributes the abortifacient drug mifepristone, under the brand name Mifeprex. This is the only drug distributed by Danco.